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India's Foreign portfolio investment inflows hit 20-month high of ₹51,200 crore($6.4 billion) in August 2022

Americans bring a lot of expertise with them, not just paper money.

Hell, the best coffee I get in India is at Starbucks.
Starbucks? best coffee in India?? Itna bhi mat chato mere bhai!

The best coffee is "Madrasi" style filter kaapi served in a steel glass kept in a steel bowl. Nothing beats it. Far cheaper as well.
Aye hai hai! Spoke my mind!
 
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Fool. This is the Americans reaping India's wealth. You even think this is a good thing.

Every time the US govt raises interest rates, the US dollar will flow back to the USA, which will lead to a substantial appreciation of the US dollar. Then the USA will use the high dollar to enter the investment markets of other countries and reap their wealth. Finally, the US dollar cut its interest rate again, and the US dollar depreciated.

Absurdly, I saw a group of Indian wheat cheering for the arrival of the American sickle.
They are increasing interest rates to tame down their hyper two digit inflation. Not to bring back investments back. It is just a consequence that is unavoidable. But this reverse flow will pass soon.
 
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Its not CCP tightening capital access but its the world losing trust in decaying China. Shanghai and Hongkong Indices have been losing value for last 7 years, before trade war even started.


Lost 5T $ in last year alone. Even CCP's LITTLE PINKS are not interested into Chinese stock market so CCP had to curb the inflated real estate bubble.
Is America so powerful? China is cutting interest rates. Will the USA dare to cut interest rates?

The so-called dangerous Chinese economy dare to cut interest rates or raise interest rates.


BTW:
FPI refers to foreign capital used to acquire shares and securities, while FDI refers to foreign capital used for investment. FPI represents the amount of foreign capital used to harvest wealth in your country. FDI indicates the amount of foreign capital that is optimistic about your economy.


IMG_20221004_134505.jpg
 
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Ignorant statement , can't even bother to read beyond it .

China is cutting interest rate and simultaneously curbing inflated real estate market . All this to make people invest into the domestic market and stocks. But all efforts of CCP going in vain.

Domestic investor dominated Shanghai index lost 10% in last 5 years and Foreign dominated HK lost 40%. Lost 5T$ in just one year.
People are pulling out of China. Whatever FDI is coming is short term for pre committed projects.
But China's stock market has never been the main investment platform for Chinese people. Because the main body of China's economy is state-owned enterprises, and these enterprises are not listed. The stock market index is very important to the economy of the USA, but not to China.

Moreover, in the past five years, China has experienced trade war, COVID epidemic, energy crisis, US dollar interest rate increase and other events, and still only decreased by 10%. Is this really serious? How much have the US and European stock markets fallen in the past five years?

Hong Kong's stock market has not fallen 40%, and Hong Kong is an independent economy, which has not affected the mainland.

Ignorant statement , can't even bother to read beyond it .

China is cutting interest rate and simultaneously curbing inflated real estate market . All this to make people invest into the domestic market and stocks. But all efforts of CCP going in vain.

Domestic investor dominated Shanghai index lost 10% in last 5 years and Foreign dominated HK lost 40%. Lost 5T$ in just one year.
People are pulling out of China. Whatever FDI is coming is short term for pre committed projects.
Because the USA is raising interest rates and China is cutting interest rates. The overnight lending rate of the Bank of America has reached 3%, and the overnight lending rate of the Bank of China is 0.75%.

Is the temporary rise of the US dollar exchange rate harmful to China? US capital cannot use the US dollar interest rate raising cycle to acquire Chinese assets. Because the Chinese govt has closed the import of foreign hot money, China's FPI will remain low in the US interest rate hike cycle.

The USA cannot maintain such high interest rates forever. Once American interest rates return to normal, China's GDP, which has been pulled down by the exchange rate, will return to its original position. The US will greatly damage its economic growth rate due to the interest rate increase cycle.




BTW: In fact, everyone in this post knows that this interest rate hike will cause great harm to the future American economy.
This interest rate increase will seriously hurt the stock market, property market and other asset platforms in the USA. It will also severely hurt the willingness of Americans to consume and invest. It will also significantly increase the debt ratio of the USA. If it were not for intolerable inflation, Americans would not choose to raise interest rates.
China's interest rate cut will not only reduce its debt, but also help export. To be sure, American capital can use the high dollar to harvest wealth around the world. But American capital can only purchase India, Japan and Europe at most, and they cannot enter China.
Finally, when the USA returns to normal interest rates, they will see a stronger China.
 
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